During a Bloomberg interview on Nov. 29, Galaxy Digital CEO Mike Novogratz stated that regulators and users consider the $4.3 billion settlement between Binance and the DOJ satisfactory. He views the Binance-DOJ settlement positively, asserting it reassures investors and exchange users.
“I think they’re de-risked in lots of ways. People were worried about dealing with Binance. There’s a lot less to worry about now.”
Novogratz emphasizes the importance of regulatory clarity in the United States for both crypto exchanges and traditional finance players, considering it a crucial factor. He notes that a prudent approach, building strong relationships, and investing in compliance are essential amid regulatory scrutiny for both crypto and traditional finance.
“If you went through the list of TradFi banks who have been sanctioned or fined by different regulators in the last 24 months, it’s a shocking list. So you’re not looking for zero mistakes, otherwise, there’d be no one to deal with,” Novogratz said.
Novogratz rejects the idea that Binance will face a fate similar to FTX, highlighting the absence of evidence of Binance stealing user funds and its steps to ensure stability and security.
“It came down to some pretty serious violations of KYC [Know Your Customer] protocols, and they’ve worked to correct them, they paid their fine, and they’re moving on,” the Galaxy Digital CEO said.
“I think it’s a net positive for their company. I think it’s a net positive for our industry”
Remaining optimistic about the U.S. Bitcoin ETF approval, Novogratz believes investment firms like BlackRock, Fidelity, ARK Invest, and Galaxy Digital would promote Bitcoin adoption if approved, fostering mainstream acceptance.
“The price is going to be significantly higher, especially at a time when the Fed is probably cutting rates. Could we go to old highs by this time next year? Of course, we could.”
Additionally, he anticipates a bullish narrative for Bitcoin from the 2024 halving and suggests U.S. elections could impact Bitcoin and other cryptocurrencies’ prices.
“That uncertainty should help Bitcoin in the fact that the U.S., Europe, and Japan still can’t come close to being fiscally responsible is why people got invested in Bitcoin in the first place,” Novogratz said.